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AT&T, Disney explore cable pact

Top executives from AT&T and Disney have slated a sit-down in Los Angeles Thursday to discuss a possible cable TV alliance, The Los Angeles Times reports.

A deal with Disney would appear to be AT&T Chairman Michael Armstrong's best alternative of the moment to an unsolicited bid from Comcast Corp., which in early July offered $40 billion in stock to take control of AT&T Broadband.

The Times cites sources who say Disney is unlikely to buy the cable unit because of its high price tag, the risks of entering the cable system business and the company's stated goal of focusing on its core content business. But Disney may consider investing cash or assets into AT&T Broadband instead.